Union Pacific Stock May Get Derailed

The railroad company's long-term outlook is promising but it warned that third-quarter earnings would fall short of Street estimates.

Though Union Pacific trains haul coal, the company served up a lump of it to investors late Thursday. The railroad operator lowered its growth forecast for the third quarter, warning that earnings and revenue would lag Street expectations.

Profits will still grow compared to a year ago thanks to higher prices. But mild weather and flooding in Colorado, both of which reduced coal demand, and an uncertain economic environment led to flat volumes. So when Union Pacific (ticker: UNP) releases quarterly financial results on...